🚨 BREAKING NEWS

FG Approves ₦550 Billion For Bank Of Agriculture To Support Farmers, Stabilise Food Prices

By Tinubu Reporters | Abuja

The Federal Government has approved ₦550 billion for the Bank of Agriculture (BoA) to boost financing for smallholder farmers and help stabilise food prices nationwide.

Of the total amount, ₦250 billion will be deployed through technology-driven systems to finance smallholder farmers via aggregation companies, including AFEX, ThriveAgric and Arziki Noma.

The remaining ₦300 billion will fund a Guaranteed Minimum Price (GMP) Programme, enabling the Bank of Agriculture to buy farm produce at harvest and release it later to help curb inflation and price volatility.

How The ₦550 Billion Will Be Used

The approved fund will support two major areas of agricultural intervention, with a focus on improving access to finance for farmers and helping to stabilise food prices.

₦250 Billion For Smallholder Farmers

About ₦250 billion will be deployed through technology-driven systems to provide financing for smallholder farmers. The funds will be channelled through aggregation companies such as AFEX, ThriveAgric and Arziki Noma.

The approach is expected to improve the efficiency of agricultural financing and make it easier to support farmers through organised agricultural networks.

₦300 Billion Guaranteed Minimum Price Programme

The remaining ₦300 billion will be used to fund the Guaranteed Minimum Price (GMP) Programme.

Under the programme, the Bank of Agriculture will purchase farm produce during harvest and release it later when necessary. The initiative is expected to help reduce food price volatility and support efforts to stabilise prices.

Key Point:
The intervention combines agricultural financing through aggregators with a Guaranteed Minimum Price Programme aimed at supporting farmers and reducing food price instability.

BoA To Work Through Aggregators

According to the information provided, the Managing Director of the Bank of Agriculture, Ayotunde Sotinrin, said the bank will channel the funds through aggregators rather than lending directly to individual farmers.

The approach is expected to improve efficiency in the distribution of agricultural financing and reduce the risk of loan defaults.

Expected Impact On Farmers And Agriculture

The intervention is expected to strengthen agricultural value chains while creating more opportunities for farmers, cooperatives and agribusiness operators.

• Improved access to agricultural financing.
• Additional support for smallholder farmers.
• Stronger agricultural value chains.
• More opportunities for cooperatives and agribusinesses.
• Support for efforts to stabilise food prices.
• Potential reduction in food price volatility.

What Farmers Should Know

Farmers and agribusiness operators interested in the intervention are advised to monitor the Bank of Agriculture and its partner companies for further information regarding eligibility and access to the programme.

⚠️ Important:
Interested farmers should rely on official announcements from the Bank of Agriculture and recognised programme partners for confirmed information about eligibility and how to access the funds.

Conclusion

The approval of ₦550 billion for the Bank of Agriculture represents a major agricultural financing intervention aimed at supporting smallholder farmers and addressing challenges around food price stability.

With ₦250 billion earmarked for financing through aggregators and another ₦300 billion allocated to the Guaranteed Minimum Price Programme, the intervention is expected to provide support across different parts of the agricultural value chain.

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— Tinubu Reporters